SVB Financial Group (SIVB) Reaches New 1-Year Low After Analyst Downgrade

SVB Financial Group (NASDAQ:SIVB) shares hit a new 52-week low during mid-day trading on Thursday after ValuEngine downgraded the stock from a sell rating to a strong sell rating. The stock traded as low as $207.51 and last traded at $214.61, with a volume of 98490 shares. The stock had previously closed at $240.43.

Several other analysts have also recently weighed in on the stock. Jefferies Financial Group boosted their price objective on shares of SVB Financial Group to $378.00 and gave the stock a “buy” rating in a research note on Monday, August 27th. Barclays reduced their price objective on shares of SVB Financial Group from $357.00 to $330.00 and set an “equal weight” rating on the stock in a research note on Friday, October 26th. Bank of America reduced their price objective on shares of SVB Financial Group from $400.00 to $350.00 and set a “buy” rating on the stock in a research note on Friday, October 26th. Zacks Investment Research reissued a “hold” rating on shares of SVB Financial Group in a research note on Thursday, November 15th. Finally, Royal Bank of Canada set a $330.00 price objective on shares of SVB Financial Group and gave the stock a “buy” rating in a research note on Friday, October 26th. Two analysts have rated the stock with a sell rating, three have issued a hold rating, sixteen have issued a buy rating and one has assigned a strong buy rating to the stock. The stock has a consensus rating of “Buy” and a consensus price target of $333.18.

In other SVB Financial Group news, Director John F. Robinson sold 500 shares of the company’s stock in a transaction on Monday, September 10th. The shares were sold at an average price of $324.07, for a total transaction of $162,035.00. Following the sale, the director now owns 5,017 shares of the company’s stock, valued at $1,625,859.19. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Michael Descheneaux sold 1,750 shares of the company’s stock in a transaction on Thursday, November 1st. The shares were sold at an average price of $239.73, for a total transaction of $419,527.50. Following the sale, the insider now directly owns 18,289 shares in the company, valued at approximately $4,384,421.97. The disclosure for this sale can be found here. Insiders have sold 2,870 shares of company stock worth $729,718 in the last ninety days. Insiders own 0.74% of the company’s stock.

A number of institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. boosted its position in SVB Financial Group by 2.2% during the third quarter. Vanguard Group Inc. now owns 5,596,383 shares of the bank’s stock valued at $1,739,523,000 after acquiring an additional 121,374 shares during the last quarter. Bank of New York Mellon Corp boosted its position in SVB Financial Group by 16.8% during the third quarter. Bank of New York Mellon Corp now owns 1,525,038 shares of the bank’s stock valued at $474,028,000 after acquiring an additional 219,000 shares during the last quarter. Capital International Investors boosted its position in SVB Financial Group by 13.0% during the third quarter. Capital International Investors now owns 854,592 shares of the bank’s stock valued at $265,633,000 after acquiring an additional 98,590 shares during the last quarter. Millennium Management LLC boosted its position in SVB Financial Group by 93.1% during the second quarter. Millennium Management LLC now owns 770,940 shares of the bank’s stock valued at $222,617,000 after acquiring an additional 371,684 shares during the last quarter. Finally, Janus Henderson Group PLC boosted its position in SVB Financial Group by 7.9% during the third quarter. Janus Henderson Group PLC now owns 751,309 shares of the bank’s stock valued at $233,529,000 after acquiring an additional 55,156 shares during the last quarter. 88.41% of the stock is currently owned by institutional investors and hedge funds.

The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.63 and a current ratio of 0.63. The stock has a market cap of $12.80 billion, a P/E ratio of 20.77, a price-to-earnings-growth ratio of 1.34 and a beta of 1.69.

SVB Financial Group (NASDAQ:SIVB) last released its quarterly earnings data on Thursday, October 25th. The bank reported $5.10 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $4.44 by $0.66. The company had revenue of $703.29 million for the quarter, compared to analysts’ expectations of $664.51 million. SVB Financial Group had a net margin of 32.44% and a return on equity of 18.39%. Equities analysts predict that SVB Financial Group will post 17.95 earnings per share for the current fiscal year.

SVB Financial Group declared that its board has initiated a share buyback program on Tuesday, November 13th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the bank to reacquire up to 3.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

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SVB Financial Group Company Profile (NASDAQ:SIVB)

SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. Its Global Commercial Bank segment offers deposit products, such as business and analysis checking, money market, multi-currency, in-country bank, and sweep accounts, as well as merchant, remote capture, lockbox, electronic deposit capture, and fraud control services; credit products and services comprising term loans, equipment loans, asset-based loans, revolving lines of credit, accounts-receivable-based lines of credit, capital call lines of credit, and credit cards; and payment and cash management products and services, including wire transfer and automated clearing house payment, bill pay, debit card account analysis, and disbursement, as well as online and mobile banking services.

Further Reading: Coverage Ratio

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